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Both resident aliens and American citizens, whether they live abroad or domestically, must use Form 3520 to report foreign inheritances valued at over $100,000. Whether your inheritance comes from a foreign estate or family member, you must inform the IRS if it exceeds the threshold.
It is essential to properly file a timely IRS Form 3520 to report a foreign inheritance or foreign gift received by a U.S. person as large penalties may be imposed on a taxpayer if the IRS later discovers that an inheritance was not properly declared when received using Form 3520.
Do I need to report foreign inheritance or gifts? If you receive an inheritance from a foreign estate or non-resident alien, or gifts from non-resident aliens exceeding $100,000 (USD), then it must be reported to the IRS. This includes the total of all foreign inheritance or gifts received.
Reporting The Foreign Gift To The IRS ing to IRS regulations, if the aggregate amount received from the nonresident exceeds $100,000 during the taxable year, the gift needs to be reported.
Do I need to report foreign inheritance or gifts? If you receive an inheritance from a foreign estate or non-resident alien, or gifts from non-resident aliens exceeding $100,000 (USD), then it must be reported to the IRS. This includes the total of all foreign inheritance or gifts received.